ORIGIN OF PAPER MONEY.

Lake Wakatip Mail, Issue 1521, 5 March 1886, Page 3

ORIGIN OF PAPER MONEY.

The veracious Spanish historian, so often quoted by Irving in his Couquest of Oranada, Fra Antonio Agapida, relates that the Count de Tendilla, while besieged by the Moors in the fortress of Alhama, was destitute of gold and silver wherewith to pay his soldiers, who began to murmur, seeing they had not the means of purchasing necessaries from the people of the town. "In this dilemna," says the historian, 44 what does the sagacious commander ? He takes a number of little morsels of paper, on which he incribes various sums, large and small, and signs them with his own hand and name. These did he give to the soldiery in earnest of their pay. 4 How' you will say, 4 are soldiers to be paid with scraps of paper ?' 4 Even so,' I answer, and well paid, too, as I will presently make manifest; for the good Count issued a proclamation ordering the inhabitants to take these morsels of paper for the full amount thereon inscribed, threatening severe punishment to those who refused, and promising to redeem them at a future time with silver and gold. Thus by a subtle and most miraculous alchemy did this Catholic cavalier turn worthless paper into precious gold, and make his late impoverished garrison abound in money." Irving adds that the Count de Tendilla redeemed his promise like a royal knight; and this miracle, as it appeared in the eyes of Fra Antonio Agapida, is the first instance on record of paper monty. This happened in 1484.